The Government e-Marketplace (GeM) has made headlines recently for achieving a Gross Merchandise Value (GMV) of Rs. 1.5 Lakh Crores. This is a significant milestone, demonstrating the GeM’s critical role in promoting the government’s principle of “Minimum Government, Maximum Governance”. The GeM, initiated by the Ministry of Commerce and Industry, Government of India, provides an online platform for procurement of goods and services by various government agencies.
Understanding Gross Merchandise Value (GMV)
Gross Merchandise Value (GMV) is an economic term that signifies the total value of goods traded through customer-to-customer or e-commerce platforms. It is calculated before any fees or expenses are deducted and measures the growth of the business or the site’s usage for reselling products owned by others through consignment.
The Government e-Marketplace (GeM): An Overview
Launched in 2016 by the Ministry of Commerce and Industry, Government of India, the GeM facilitates the procurement process for numerous government departments and organisations. The platform is open to all government departments, public sector undertakings, autonomous bodies and other organisations. Presently, GeM ranks third worldwide, being eclipsed only by Singapore’s GeBIZ and South Korea’s KONEPS.
Significance of GeM
There are several significant factors associated with the GeM, which collectively contribute to its instrumental role in the nation’s digital economy:
Boost to Digital Economy
By digitalising government procurement processes, the GeM actively contributes to the expansion of India’s digital economy. Over the past 6.5 years, GeM has implemented technology-driven changes in the ecosystem of public procurement in the country, leading to the digitisation of processes, integration of all stakeholders, and application of analytics.
Improved Vendor Participation
GeM encourages more vendors, including small and medium enterprises, to partake in government procurement procedures. This results in heightened competition and better value for money for the government.
Transparency and Efficiency
GeM standardises and automates procurement processes, which enhances their transparency and efficiency while curbing corruption and human error.
Last Mile Outreach
As part of its outreach initiative, GeM has integrated with over 1.5 lakh India Post offices and over 5.2 lakh Village Level Entrepreneurs (VLEs) through the Common Service Centres.
Developments in GeM
In recent times, GeM has introduced certain mandatory rules and collaborations. Every time a new product is listed on GeM, sellers are obligated to specify its Country of Origin. Furthermore, in a move to encourage the bamboo industry, the National Bamboo Mission and the GeM have jointly launched a dedicated window on the GeM portal for marketing of bamboo goods.
Last Modified: February 20, 2024